Q.

When the total product rises at an increasing rate, the -

A. marginal product is zero
B. marginal product is rising
C. marginal product is falling
D. marginal product remains constant
Answer» B. marginal product is rising
Explanation: Marginal product of an input (factor of production) is the extra output that can be produced by using one more unit of the input (for instance, the difference in output when a firm's labor usage is increased from five to six units), assuming that the quantities of no other inputs to production change. Marginal product, which occasionally goes by the alias marginal physical product (MPP), is one of two measuresderived from total product. The other is average product. Marginal product is directly proportional to total product.
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